From making hundreds of millions a year to paying 500 million in compensation for a failed bet! Did Tongtuo Technology hold back its parent company?

In the blink of an eye, it is time for the intensive release of financial reports of cross-border sellers.

Facing the turbulent year of 2022, the performance reports disclosed by big sellers are still varied: some are making rapid progress and earning hundreds of millions, some are struggling just to narrow their losses, and some are unable to resist the downward trend and suffer huge losses year after year...

Recently, following the previously reported big sales of Youkeshu, iHealth and others, Zebao’s parent company Xinghui Holdings and Tongtuo’s parent company Huading Holdings have also successively announced their 2022 performance forecasts.

It is learned that on January 31, Xinghui Holdings, the parent company of cross-border retailer Zebao, released its 2022 annual performance forecast.

During the reporting period, Xinghui Co., Ltd. expects the net profit attributable to shareholders of the listed company to be a loss of 182 million yuan to 236 million yuan , and the net profit loss after deducting non-recurring gains and losses is 184 million yuan to 239 million yuan . The operating loss of the e-commerce business narrowed compared with the same period last year , but the company's overall performance is still in the red.

▲ The picture comes from the announcement of Xinghui Shares

Regarding the reason why the company's net profit attributable to shareholders of listed companies was negative, Xinghui Co., Ltd. pointed out that it was mainly due to the significant year-on-year decline in sales revenue of e-commerce business: In 2022, affected by events such as the new crown epidemic, the Russia-Ukraine conflict and the Federal Reserve's interest rate hike, overseas core consumption declined, and the company's cross-border e-commerce business suffered a major impact, and the business failed to fully recover.

It can also be seen from the financial reports for the first three quarters of 2022 that Xinghui Co., Ltd.'s revenue curve has indeed shown a significant decline : Xinghui Co., Ltd. achieved revenue of 1.836 billion yuan, a decrease of 39.08% from the same period last year.

Apart from external environmental factors, it is understood that Zebao suffered heavy losses in the 2021 account blocking wave: a total of 367 sites were closed by Amazon, and the balance of frozen funds was about 32.2301 million yuan. Up to now, the continued decline in the performance of the parent company also confirms that Zebao has not completely emerged from the shadow of the sequelae of the account blocking.

However, overall, although there is still a long way to go to turn losses into profits, Zebao has narrowed the operating losses of Xinghui's e-commerce business by continuously strengthening the development of self-operated businesses and branding transformation strategies, and is waiting for the opportunity for the cross-border e-commerce industry to bottom out and rebound.

Compared with Zebao, whose performance has been steadily improving, the situation of Tongtuo Technology, which is also continuously affected by the wave of account bans, seems to be even less optimistic.

It is learned that on January 31, Huading Holdings, the parent company of cross-border e-commerce giant Tongtuo Technology, announced its 2022 annual profit forecast.

The announcement shows that in 2022, Huading Co., Ltd. expects to achieve a net profit attributable to the parent company's owners of 360 million yuan to 530 million yuan , which will turn losses into profits compared with the same period last year .

▲ The picture comes from Huading Shares’ announcement

However, it is worth noting that Huading Co., Ltd. also expects that the net profit attributable to the parent company's owners after deducting non-recurring gains and losses in 2022 will be negative, with a loss of 200 million to 400 million yuan .

As for the reason for the expected profit in this period, Huading shares also pointed out that it was mainly affected by non-recurring gains and losses :

• The occupied funds returned by Zhenai Group (about RMB 595 million) were reversed and included in the current period's profit and loss;
• The repurchase and cancellation of shares of Zou Chunyuan, Liao Xinhui, the performance commitment compensation parties, and Tongwei Investment will affect the company's current profit and loss by approximately RMB 150 million.